The Morality of Corporate Downsizing

Abstract

Perhaps nothing in business is more sacrosanct than the freedom of asso ciation implied in being able to choose one's business partners and associ ates. Indeed, this "freedom" seems almost to define business. It means that as long as one does not discriminate on the basis of gender, religion, and so on, one can hire, fire, and buy "at will." It comes with some surprise, then, that we find this freedom of association being undermined and attacked through moral arguments against downsizing. John Orlando argues that downsizing harms employees and, hence, is "very often morally wrong" (Orlando, 2003, p. 32). It is impossible to say beforehand exactly which acts of downsizing will be permissible because "business managers will need to examine the actual situations of their share holders and workers, as well as that of the company . ..." (p. 45). But, in general, Orlando thinks "an act of downsizing that prevents the collapse of the corporation can be justified ...," and perhaps no other (p. 45). Robert Miller argues that: